Woody biomass in high demand

Sweden’s vision to produce 50% of its energy from sustainable sources by 2020 looks extremely likely since 32% of its energy is already generated from biomass.

The government is striving for the nation to become 100% fossil-free by the year 2030 and as a result investments in the sector have soared over the past few years.

However, according to the Wood Resource Quarterly, logs and wood chips are now in more demand than ever before as they can be utilised by both the pulp and paper sector and the renewable energy industry.

The ever-expanding energy sector is now in need of an increasing supply of woody biomass and is turning to roundwood to provide this. The fact that roundwood is also used in pulp mills means that the price for wood fibre is now escalating to an all-time high.

The cost of smaller logs has been pushed up throughout previous years and it is expected that this will not lower to the prices witnessed between 1997 and 2006.

The Wood Resource Quarterly stated that, in Swedish krona, the prices for pulplog in the Q1 of this year were 20% higher than they were five years ago and 36% higher than 10 years ago.

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